SON Certifies Dangote Sugar Refinery

Fri, Apr 24, 2015
By publisher



The Standard Organisation of Nigeria issues Dangote Sugar Refinery with another Food Safety Management Systems certification (NIS ISO 22000:2005), making it the only company in the country to have triple certification

By Anayo Ezugwu  |  May 4, 2015 @ 01:00 GMT  |

DANGOTE Sugar Refinery is now certified food safety compliant by the Standard Organisation of Nigeria, SON, which issued the company the Food Safety Management Systems certification (NIS ISO 22000:2005) recently. Food Safety Management Systems deputy group managing director, Dangote Sugar, said the Food Safety Management System is a standard that guides the refinery’s core business, the refining of high quality sugar using safe practices to manufacture finished product using hygienically habits in the production processes. The latest certification is the third in the series of ISO certification on quality, process safety/security and food safety, achieved by the Sugar Refinery. This makes the company the only sugar organisation in the country with three ISO certifications.

In addition to the Food Safety Management System ISO 22000:2005, Dangote Sugar Refinery is also ISO 9001:2008 Quality Management Systems and ISO 18001:2007 Occupational Health and Safety Management System certified. These certifications attest to Sugar Refinery’s relentless efforts at achieve its set goal to be one of the world’s leading integrated sugar producers, with high quality products and using best practices in the day to day running of its operations, in line with internationally accepted standards.

Dangote Sugar Refinery is currently working towards the achievement of FSSC 22000, (Food Safety System Certification); a GFSI (Global Food Safety Initiative) recognised scheme. The sugar refinery is actively pursuing a backward integration master plan with a target of producing a total of 1.5 million tons of sugar per annum. The target is to enable it meet the national sugar master plan. It plans an additional investment of N180 billion for 4 factories in Sokoto and Kebbi States and has 150,000 hectares of land allocated for the project in Kogi, Kwara, Jigawa, Sokoto, Taraba and Kebbi.

Dangote Sugar acquired the moribund 50,000 tonnes per annum capacity sugar producing factory-the Savannah Sugar Company Limited in Numan, Adamawa State, in 2002. The buy-over, midwifed by the Bureau of Public Enterprises, BPE, was the fallout of the failure of several attempts made by the federal government to reposition the nation’s foremost sugar company. Dangote Industries Limited emerged as the preferred bidder and core investor and after which it quickly went into turnaround activities in the company. To put the company back in shape, Dangote began investments of several billions of Naira. Specifically, N12 billion initial investments were made by Dangote Group as core running expenses into the business after the take-over in the first five years.

The areas that gulped the money included factory and estate rehabilitation; purchase of vehicles, trucks and heavy duty equipment; salaries and wages; farm inputs like fertilisers and chemicals, among others; spare parts for factory and heavy duty equipment and payments in the form of Sugar Development Levy.

Meanwhile, the company has recorded improved bottom line for the 2014 despite the challenging operating environment. The audited results of the company released on Friday, April 17, showed a profit after tax of N11.6 billion, up from N10.8 billion. Based on the performance, the directors have recommended dividend of N4.8 billion, which translates into 40 kobo per share.

The company ended the year with gross revenues of N94.9 billion, as against N103.2 billion in 2013. It reduced its operating expenses by 29 per cent from N12.1 billion to N8.6 billion, while other income improved from N3.9 billion to N5.4 billion. Profit after tax settled at N11.6 billion, up from N10.8 billion in 2013. In 2014, the primary focus of Dangote Sugar was to enhance its operational efficiency, focus on growth plans increase sugar production, and to continue to provide for the needs and requirements of its customers, employees and stakeholders generally.

“Our performance in 2014, was impacted by operational challenges including disruptions to the supply of natural gas (our primary energy source) to the Apapa Refinery, currency depreciation and the challenges of the security situation in north-eastern Nigeria,” the company said.

The company targets include helping Nigeria towards self-sufficiency in sugar production by moving from importation and refining to create new plantations with their own refining facilities, close to major centres of demand with a target to produce 1.5 million tonnes of refined sugar by 2024 across more than 150,000 hectares of newly planted land; to provide economic benefits to local communities by way of direct and indirect employment and to set a good example in areas such as governance, sustainability, health and safety.



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